Bad budgeting: The NHS has spent far more money firing and re-hiring pen-pushers than it is willing to give in increased pay to nurses. In what twisted system is that fair? [Image: BBC]

The Coalition’s ‘reformed’ NHS has been spending a fortune on re-hiring managers it had previously given large redundancy payments – while Jeremy Hunt has been telling us there is no money to give nurses a pay rise.

Tory health minister Dan Poulter (the Health Secretary himself was nowhere to be heard) had to admit that 3,950 staff whose jobs were made redundant after May 2010 have since been hired back, in response to a Parliamentary question from Labour’s Julie Hilling. The figures cover a period up to November last year, so the true number may be even more.

These are managers who received large payoffs as part of the £3-4 billion ‘restructuring’ of the National Health Service that began before Andrew Lansley’s Health and Social Care Act was passed by Parliament.

The aim, as revealed in Nicholas Timmins’ Never Again: The Story of the Health and Social Care Act 2012, was defined by Oliver Letwin as “encouraging staff to quit public sector employment while selling their services back through social enterprise”. In other words, after losing their jobs in the ‘old’ NHS – and receiving large redundancy settlements for the inconvenience – managers were to be re-hired at high cost to the ‘new’ NHS.

Shadow Health Secretary Andy Burnham had this to say: “It’s clear that people who received payoffs are now coming back to the NHS in ever greater numbers. We need to know whether the Prime Minister has honoured his promise to recover redundancy payments from people who have been re-employed by his new organisations.

“The sickening scale of the waste caused by Cameron’s reorganisation is finally becoming clear. It will infuriate people who can’t get a GP appointment or nurses who are struggling to pay the bills.”

He pointed out: “It will be utterly galling for nurses who’ve just had a pay cut from David Cameron to see he’s been handing out cheques like confetti to people who have now been rehired.

“On his watch, we have seen payoffs for managers and pay cuts for nurses.”

Everyone should agree that the Tory fuss over former Co-op Bank chief Paul Flowers is an attempt to distract us all from a more serious transgression that they themselves have committed.

Flowers, who is also a former Labour councillor, was arrested last week after being filmed allegedly handing over money to pay for cocaine.

The Conservatives have spent the last few days working very hard to establish a link, in the public consciousness, between the criminal allegations against Flowers, the Co-op Bank’s current financial embarrassment – believed to have been caused because Flowers knew nothing about banking, and the Labour Party, which has benefited from loans and a £50,000 donation to the office of Ed Balls.

This is unwise, considering a current Tory peer, Viscount Matt Ridley, was chairman of Northern Rock at the time it experienced the first run on a British bank in 150 years. He was as well-qualified to chair that bank as Paul Flowers was to chair the Co-op. A writer and journalist, his only claim on the role was that his father was the previous chairman (apparently the chairmanship of Northern Rock was a hereditary position).

Ridley was accepted as a Tory peer after the disaster took place (a fact which, itself, casts light on Conservative claims that they were going to be tough on bankers after the banker-engineered collapse of the western economies that started on his watch). The Conservatives are currently obsessing about what happened between Flowers and the Labour Party before the allegations of criminality were made.

Ridley is listed as having failed in his duty of care, which is not very far away from the kind of responsibility for the Co-op Bank’s collapse that is alleged of Paul Flowers. (Source: BBC Any Questions, November 22, 2013)

In addition, the Co-op Bank is not the Co-operative Party or the Co-operative Movement, and those two organisations – one of which is affiliated with the Labour Party – must not be tarred with the same brush.

The Tories are hoping that the public will accept what they are told, rather than digging a little deeper for the facts.

There’s no real basis for their venom; they ennobled a man who presided over much worse damage to the UK’s financial institutions, and attracting attention to criminal behaviour by members or supporters of political parties would be a huge own-goal.

Therefore this is a distraction. From what?

Cast about a little and we discover that Jeremy Hunt is threatening to create a new criminal offence for doctors, nurses and NHS managers if they are found to have wilfully neglected or mistreated patients – carrying a penalty of up to five years in jail.

Some of you may be delighted by this move, in the wake of the Mid Staffs scandal – even though questions have been raised over the accuracy of the evidence in that case.

But let’s look at another controversial area of government – that of social security benefits for the seriously ill.

It appears the Department for Work and Pensions, under Iain Duncan Smith, is planning to remove financial support for more than half a million people who – by its own standards – are too ill to seek, or hold, employment.

The Observer‘s report makes it clear that the arguments are all about money, rather than patient care. Smith is concerned that “only half of WRAG claimants are coming off-benefit within three years, and hundreds of millions of pounds are being tied up in administration of the benefit, including work capability assessments and the appeals process”.

No mention is made of the fact, revealed more than a year ago, that many of those in the WRAG in fact belong in the Support Group for ESA (the group for people recognised to have long-term conditions that are not likely to go away within the year afforded to WRAG members). They have been put in the WRAG because targets set by Smith mean only around one-eighth of claimants are put into the Support Group.

The knock-on effect is that many claimants appeal against DWP decisions. This has not only caused deep embarrassment for Smith and his officials, but added millions of pounds to their outgoings – in benefit payments and tribunal costs.

Not only that, but – and this is the big “but” – it is known that many thousands of ESA claimants have suffered increased health problems as a result of the anxiety and stress placed on them by the oppressive process forced upon them by Iain Duncan Smith.

This means that between January and November 2011, we know 3,500 people in the WRAG died prematurely. This cannot be disputed by the DWP because its claim is that everyone in the WRAG is expected to become well enough to work within a year.

These are not the only ESA claimants to have died during that period; a further 7,100 in the Support Group also lost their lives but are not used in these figures because they had serious conditions which were acknowledged by the government and were getting the maximum benefit allowed by the law.

What about the people who were refused benefit? What about the 70 per cent of claimants who are marked “fit for work” (according to, again, the unacknowledged targets revealed more than a year ago by TV documentary crews)?

We don’t have any figures for them because the DWP does not keep them. But we do know that many of these people have died – some while awaiting appeal, others from destitution because their benefits have been stopped, and more from the added stress and insecurity of seeking work while they were too ill to do it.

Now Iain Duncan Smith (we call him ‘RTU’ or ‘Returned To Unit’, in reference to his failed Army career) wants more than half a million people – who are known to be too ill to work – to be cut off from the benefit that supports them.

Let’s draw a line between this and Jeremy Hunt’s plan to criminalise medical professionals whose wilful, reckless or ‘couldn’t care less’ attitude to patients’ needs causes avoidable death or serious harm.

Clearly, such an attitude to people with serious long-term conditions should be carried over to all government departments, and yet nobody is suggesting that the DWP (and everybody who works for it) should face the same penalties.

Why not?

By its own admission, choices by DWP decision-makers – acting on the orders of Iain Duncan Smith – have led to deaths. We no longer have accurate information on the number of these deaths because Smith himself has blocked their release and branded demands for them to be revealed as “vexatious”. No matter. We know they have led to deaths.

If doctors are to face up to five years in prison for such harm, then government ministers and those carrying out their orders should be subject to the same rules.

By his own government’s standards, Iain Duncan Smith should be in prison serving many thousands of sentences.

The rise of zero-hours contracts: These figures from the Office for National Statistics may be showing only one-fifth of the picture, according to new research.

The rise of the zero-hours contract must be deeply disturbing to all those with an interest in fair employment practices.

The arrangement is that an employee agrees to be available for work whenever required, but with no set number of hours or times of work specified. The employee is expected to be on-call at all times but is paid only for the number of hours that are actually worked.

There appears to be no pension scheme, no sickness cover, no holiday entitlement – no rights other than those laid down by health and safety regulations (which the government is trying to ditch) and the National Minimum Wage Act (also under threat from the Conservative-led government).

Also, the system is open to abuse by managers, who can use it to reward some employees (and the term is used in its loosest possible sense) with extra hours or punish others with fewer.

And how, exactly, is an employee supposed to be engaged in, and enthusiastic about, a job where they are treated as a disposable commodity, to be picked up and thrown away whenever it is expedient?

It seems possible that there is an argument in favour of zero-hours contracts – but only for employees who want to top-up another income stream; people who want occasional earnings and are flexible about when they work. The problem here is that it seems likely employers will want these people to work at times when it will be hard to meet the commitment.

For anyone else – including people who are unemployed, penniless, and need the certainty of a properly-constituted employment contract with set hours, pay and conditions, there seems to be no point in taking up such a contract at all. Yet they are proliferating across the UK.

Is the Department of Work and Pensions, through the Job Centre Plus network, forcing these conditions on jobseekers?

Such a situation might be a huge boost to employment figures, but it would also explain why average pay has fallen so drastically in recent years and the economy has failed – so abjectly – to reignite.

The BBC is reporting that 14 per cent of these could not earn a basic standard of living. If Job Centres are forcing people into these jobs, via the sanctions regime, this is scandalous. Perhaps it is permitted by law, but this would only mean that the government should have a duty to ensure that jobs which are taken under the threat of sanction are capable of providing this basic standard.

Worse still for the government is the allegation, in research by the Chartered Institute of Personnel and Development, that public sector firms – those with government contracts – are more likely to use zero-hours contracts than private companies.

This is particularly prevalent in education and healthcare.

And how is the benefits system affected by these contracts?

CIPD chief executive Peter Cheese told the BBC: “Zero-hours contracts cannot be used simply to avoid an employer’s responsibilities to its employees.” But isn’t that exactly how they are being used? Don’t the number of people saying they can’t make ends meet, and the wider state of the economy, indicate exactly that?

Unison general secretary Dave Prentis seems to have got it right when he said: “The vast majority of workers are only on these contracts because they have no choice. They may give flexibility to a few, but the balance of power favours the employers and makes it hard for workers to complain.

“The growing number of zero-hours contracts also calls into question government unemployment figures.”

Business secretary Vince Cable has ordered a review of the zero-hours contracts system, to take place over the summer. He played down fears of abuse, saying evidence was “anecdotal” and adding that “it’s important our workforce remains flexible” (in employment terms, this means all the power is with the employer, while the actual worker has to adapt to the circumstances foisted upon them).

Shadow Health Secretary Andy Burnham called for zero-hours contracts to be banned, back in April this year.

It seems clear that they are unsafe and open to abuse. But would an all-out ban be appropriate?

Would it not be wiser for Job Centres to continue advertising them, but with no obligation to recommend them to jobseekers (and certainly no requirement to force anyone into applying for them), and with a requirement to warn anyone considering taking up such a position about the possibility that they will not be able to survive on the pay provided?

This might go some way to redressing the balance of power with employers; without the coercive power of the government supporting these contracts, they might try more traditional (and fairer) employment models.

I have been saddened to learn of two events that will take place in the near future: The death of The Dandy, and the publication of Britannia Unchained.

The first needs little introduction to British readers; it’s the UK’s longest-running children’s humour comic, which will cease publication (in print form) towards the end of this year, on its 75th anniversary. The second appears to be an odious political tract scribbled by a cabal of ambitious right-wing Tory MPs, desperate to make a name for themselves by tarring British workers as “among the worst idlers in the world”.

The connection? Even at the end of its life, there is better and more useful information in The Dandy than there will be in Britannia Unchained.

The book’s authors, Priti Patel, Elizabeth Truss, Dominic Raab, Chris Skidmore, and Kwasi Kwarteng, all members of the Free Enterprise Group of Tory MPs, argue that British workers are “among the worst idlers in the world”, that the UK “rewards laziness” and “too many people in Britain prefer a lie-in to hard work”.

They say the UK needs to reward a culture of “graft, risk and effort” and “stop bailing out the reckless, avoiding all risk and rewarding laziness”.

Strong words – undermined completely by the authors’ own record of attendance at their place of work.

Chris Skidmore’s Parliamentary attendance record is just 88.1 per cent – and he’s the most diligent of the five. Kwasi Kwarteng weighs in at 87.6 per cent; Elizabeth Truss at 85.3 per cent; and Priti Patel at 81.8 per cent. Dominic Raab is the laziest of the lot, with Parliamentary attendance of just 79.1 per cent.

To put that in perspective, if I took more than a week’s sick leave per year from my last workplace, I would have been hauled up before the boss and serious questions asked about my future at the company. That’s a 97.9 per cent minimum requirement. Who are these slackers to tell me, or anyone else who does real work, that we are lazy?

Some have already suggested that these evil-minded hypocrites are just taking cheap shots at others, to make themselves look good for promotion in an autumn reshuffle. Maybe this is true, although David Cameron would be very unwise to do anything but distance himself from them and their dangerous ideas.

I think this is an attempt to deflect attention away from the way the Tory-led government has mismanaged the economy, and from its murderous treatment of the sick and disabled. As one commentator put it: “They get a token Asian, a token African, a token Jew, mix in the middle class/grammar school rubbish propaganda, and suddenly they are just ordinary people? No they are not; they are stooges for the ruling elite.”

Britain doesn’t reward laziness among its working class. What it rewards is failure by managers, directors of industry, financiers. These people continually increase their salaries and other remuneration while their share prices fall, their dividend payments are lacklustre and shareholder value is destroyed. What have they given shareholders over the past 10 years? How many industrial or commercial leaders have walked off with millions, leaving behind companies that were struggling, if not collapsing? Does the criticism in Britannia Unchained apply to senior executives and bankers?

Our MPs are as much to blame as big business. They vote themselves generous pay, pensions and extended vacations (five months per year). They never start work before 11am, never work weekends (or most Fridays, when they are supposed to be in their constituencies, if I recall correctly). They enjoy fringe benefits including subsidised bars, restaurants and gyms. They take part-time directorships in large companies which take up time they should be using to serve the public. Only a few years ago we discovered that large numbers of them were cheating on their expense claims. They take more than £32,000 in “Resettlement Grant” if we kick them out after one term – which, in my opinion, means all five authors of Britannia Unchained should be applying for it in 2015.

These are the people who most strongly represent the ‘something-for-nothing’ sense of entitlement the book decries.

Have any of them ever worked in a factory or carried out manual labour? I’ll answer that for you: With the exception of Elizabeth Truss, who did a few years as a management accountant at Shell/Cable and Wireless, none of them have ever done anything that could be called real work.

In fact, the people they accuse work very long hours – especially the self-employed. When I ran my own news website, I was busy for 12-14 hours a day (much to the distress of my girlfriend). Employees also work long hours, get less annual leave, earn less and pay more – in prices for consumer goods, taxes and hidden taxes – than most of Europe. Average monthly pay rates have now dropped so low that they are failing to cover workers’ costs, leading to borrowing and debt.

Are British workers really among the laziest in the world? Accurate information is hard to find but it seems likely we’re around 24th on the world league table. On a planet with more than 200 sovereign nations (204 attended the London Olympics), that’s not too shabby at all.

Interestingly, the European workers clocking on for the fewest hours are German. Those lazy Teutons! How dare they work so little and still have the powerhouse economy of the continent?

If so many are reluctant to get up in the morning, why are the morning commuter trains standing room only? Or have the Britannia Unchained crowd never used this form of travel?

It seems to me that Britannia Unchained is just another attempt by the Tory right to make us work harder for less pay. The Coalition is currently cutting the public sector and benefits to the bone, while failing to introduce policies that create useful employment, and trying to boost private sector jobs. The private sector has cut wages and pensions. The result is higher unemployment and benefits that cannot sustain living costs, creating a working-age population desperate for any kind of employment at all (even at the too-low wages already discussed).

And let’s remember that Conservatives want to remove employment laws to make it easier to dismiss employees. In other words, they want a workforce that will toil for a pittance, under threat of swift dismissal and the loss of what little they have.

Why do they think this will improve the UK’s performance?

We already work longer hours and have less protective legislation than in Europe (such as the European Time Directive). But we are less productive in terms of GDP than their French and German counterparts, who work fewer hours and are protected by the likes of the ETD.

France is more unionised than we are, yet its production per employee is higher.

The problem is poor management and bad leadership. Poor productivity is almost always due to poor investment and poor training. Workers are abused when they should be treated as an investment. They lose motivation and when managers get their decisions wrong, they blame the workers.

Working class people are sick of grafting for low pay and in poor working conditions, to be exploited by the types of people represented by the authors of Britannia Unchained.

Is it any wonder we feel de-motivated?

I started this article by linking The Dandy to Britannia Unchained, noting that one was coming to the end of its life in print while the other was about to be published for the first time. I’ll end by pointing out a quality they have in common.

The Dandy is closing because it represents ideas that are now tired and out-of-date. Britannia Unchained should never see publication – for the same reason.